LIC Jeevan Rakshak Plan is a participating Endowment Plan. It is a Traditional Plan with Bonus facility which gives you the dual benefit of protection and savings.
How it works – In this plan, premium is to be regularly for the entire term. On maturity, the policyholder gets the basic Sum Assured and the Loyalty Additions. If the policyholder dies during the term of the policy then the Sum Assured on death and the Loyalty Additions (if any) is paid to the nominee. LIC’s Accident Benefit rider makes the plan comprehensive.
Key Features of LIC Jeevan Rakshak Plan
- It is a participating Endowment Plan for savings and protection needs.
- Bonus is given in the form of Loyalty Additions after the completion of 5 policy years.
- Rebate is given for yearly and half-yearly mode of premium payment the rebate being 2% and 1% of the Tabular Premium respectively.
- Rebate is also given for choosing a Sum Assured of 1,50,000 and higher @ 1.5% of the Sum Assured
- This is a non-medical fixed benefit plan
Benefits you get from LIC Jeevan Rakshak Plan
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets:
- Sum Assured on Death +
- Loyalty Additions (if any) if death occurs after 5 completed policy years.
Sum Assured on Death is defined as the higher of:
- Basic Sum Assured
- 10* Annual Premium
- 105% of all premiums paid till death
Maturity Benefit – On survival till the end of the policy tenure, the policyholder gets the Basic Sum Assured and the corresponding Loyalty Additions
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.
Eligibility conditions and other restrictions in LIC Jeevan Rakshak Plan
Minimum
|
Maximum
| |
Sum Assured (in Rs.)
|
75,000
|
2,00,000
|
Policy Term (in years)
|
10
|
20
|
Premium Payment Term (in years)
|
Equal to policy term
| |
Entry Age of Life Insured (in years)
|
8
|
55
|
Age at Maturity (in years)
|
-
|
70
|
Premium (in Rs.)
|
Depends on age, term and Sum Assured chosen
| |
Payment modes
|
Yearly, half-yearly, quarterly, monthly.
| |
Additional Features and Benefits of LIC Jeevan Rakshak Plan
Riders – LIC’s Accident Benefit Rider is available under the plan
What happens if?
You stop paying the premium - If the policy holder stops paying the premium, the policy lapses and all benefits cease to exist. If however, at least 3 full years’ premiums have been paid then the policy becomes paid-up and continues on this reduced value. The Paid-up Value is payable to the policyholder on maturity or earlier death.
Paid-up Value = Basic Sum Assured * (Number of Premiums Paid/ Total Number of Premiums Payable)
You want to surrender the policy – The policy acquires a Surrender Value if at least 3 full years’ premium has been paid. The Surrender Value payable will be the higher of:
- Guaranteed Surrender Value expressed as a percentage of total premiums paid, or
- Special Surrender Value which may be declared from time to time
You want a loan against your policy – Loan facility is available under the plan as per terms and conditions mentioned by the company.
Other Endowment Insurance Plans from LIC
LIC Single Premium Endowment Plan
LIC New Jeevan Anand Plan
LIC New Endowment Plan